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The Actuary The magazine of the Institute & Faculty of Actuaries

Changing face of regulation

Welcome overseer or necessary evil? Cradle of innovation or dampening force? A key driver for the fields in which actuaries operate, regulation is one of the featured themes for the month. The ever-changing environment in which our industries operate not only provides us with variety and challenge in our work, but also keeps many of us in our jobs as we interpret and make practical the intentions of the regulatory gatekeepers.

Solvency II is currently at the forefront of the arena for many and, although it has been a familiar name for some time, is still finding its true form. The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) approach is to seek feedback from ‘providers of insurance and occupational pensions funds products, market participants, end-users and consumers’, many of whom are represented by actuaries. At the beginning of July, CEIOPS issued its second set of consultation papers, with draft technical advice to the European Commission on the level two Solvency II requirements.

Consultation paper 40 CEIOPS-CP- 40-09 L2 Advice on Risk Free Interest Rate has been keeping insurance professionals occupied, and for those wishing to participate in the debate over the use of liquidity premiums in valuing reserves, this paper is right up your alley. Dan Georgescu and Radu Popescu share their views on this topic, in keeping with our financial economics theme.

On my own doorstep, I sought and received feedback on the magazine. Among your many favourable comments, there have been some items to address:
>> Comment: My photo, taken three years ago, is not a true likeness and could be more daring. Action: noted and amended — I’ll work on the daring element. Thank you David Dullaway, Jeremy Goford and Melanie Slack.
>> Comment: Web exclusive features listed on the contents page should provide further detail about the authors and content. Action: Noted and amended. Thank you Chris Lewin.
>> Thank you to Diego Mazzeo and Edmund Quiery for your suggestions for future feature content and to all our content contributors.

Marjorie Ngwenya